Mumbai, Oct 3 (IANS): Foreign Portfolio Investors (FPIs) became net sellers in the Indian equities market as negative global and domestic cues dented sentiments.

The foreign institutional investors (FIIs) along with sub-accounts and qualified foreign investors have been clubbed together by market regulator Securities and Exchange Board of India (SEBI) to create a new investor category called FPIs.

FPIs massively sold stocks worth Rs.653.95 crore or $105.29 million, according to data with the National Securities Depository Limited (NSDL).

For the week ended Sep 26, the FPIs had sold stocks worth Rs.2,487.02 crore and had only bought shares worth $75.40 million or Rs.458.34 crore.

The week ended Sep 19 saw the FPIs buying shares worth $354.24 million or Rs.2,159.67, which helped propel the Indian equities market to subsequent new highs.

Negative domestic sentiments were cited as a major cause for FPIs pulling back. One of the main reasons cited was RBI's decision to keep the main lending rates unchanged after a monetary policy review as it waited for more signs of inflation to slow down

RBI said that the country is currently positioned to reach the inflation target of six percent by January 2016.

It has retained the economy's growth projection for current fiscal at 5.5 percent and said the future policy stance will be influenced by the inflation outlook.

The status quo in these key policy rates mean the equated monthly instalments (EMIs) on home, auto and other loans would remain unchanged as these rates determine lending and borrowing rates of the commercial banks.

Other reasons such as the fall in US index due to unexpected decline in September’s consumer confidence data to four month low as Americans view on labour market worsened, further added to the FPIs anxiety.

However, the speculations that European Central Bank may boost stimulus after a
report showed euro-area inflation slowed this month, gave little relief to foreign investors.